Question 35

Borden Enterprises uses standard costing. For the month of April, the company reported the following data:

Standard direct labour rate $10 per hour

Standard hours allowed for actual production 8,000

Actual direct labour rate $9.50 per hour

Labour efficiency variance $4,800 favourable

What was the labour rate variance for April?

Question 35 options:

A)

$3,760 unfavourable.

B)

$3,760 favourable.

C)

$2,850 unfavourable.

D)

$2,850 favourable.